Benchmarks & Client Cases

Portfolio Optimization

The Challenge

Final Products References

Final Products References


• High dispersion of sales

• 11% of products account for 80% of sales

• Too many options to set up the product: 246 model types x 196 finishing options

Root Causes

• Lack of knowledge of product range amongst sales team members

• Long Lead Time for product development (with similar choices available)

• Low hit rate

• High levels of raw material stock

The Solution


• Variety Reduction Program: rationalization of the product range

• Raw materials references review

• Negotiation with suppliers improvement

• New Costing and Budgeting Method

• Definition of new standards for replenishment and sales guidebook

• Awareness of different markets and projects margin

The Results

The project resulted in annual savings of $1.25 million and release $1.5 million of Free Cash-Flow in the first year.


Margin for A-Products


Hit rate


Stock (Value k$)

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